Tuesday, 9 June 2015.
Wal-Mart Strategic Competitiveness
Wal-Mart is one of the amazing stories of success in the history of the world. The company found by Sam Walton in 1962 became a mini-shop in Arkansas. Since its inception, it has become the largest global corporation. It seems improbable that the organization has become the second largest organization in less than 60 years
Almost one third of the country’s population in Wal-Mara weekly (William, 2010). In addition, up to 93 percent of households in the United States visit the store at least once a year. A fiscal year ending 31
Wal Mart’s stores in the United States generated about 8.8 percent of all retail sales (William, 2010). It was also profitable and in 2009 earned 14.7% of the invested capital (Hitt & Hoskinson, 2013). This was the result, which took the first place among its competitors, as well as 10% and 9.4%, respectively. The company currently has more than 3,900 stores in the United States and has since been considered a national asset
Thus, the paper will assess the role of technology and globalization in competitiveness with Wal-Mart, as well as how the vision of the company and its operators affect overall growth
The most important feature of the strategic management process under Hitt and Hoskisson (2013) is the development of a mission statement. This should be the basis upon which the formulation of objectives will take place. The mission statement determines the reason for the existence of the organization when the company hopes that it will be known in the future as a vision, and the main purposes are the key values of the organization’s statements
In the US, the company’s success strategy is based on the sale of branded goods at an affordable price. The store has grown rapidly, reducing its prices compared to local retailers, and as a result, it is easy to keep them in business (William, 2010). That is why the company was able to work extremely well in the sphere of retail trade, characterized by competition for the cutting in the throat
“If the company’s strategy results in superior productivity, it is said to have a competitive advantage.” Wal-Mart quickly improved the competition on the basis of new knowledge in the creation of the first, profitable offer, price and quality, and competition to help protect geographically defined markets. This allowed the company to enjoy a higher performance in 1994, despite the increase in the number of new competitors
The store has reached an additional edge over its competitors (Hitt & Hoskisson, 2013). Its higher profitability repeats the economic advantage, which depends on the successful implementation of various strategies. In addition, the company is among the first to use the self-service strategy created by grocery stores for the common good
In addition, the company is concentrated in peri-urban areas and southern cities, which are often ignored by competitors, including Target and Kmart. However, the industry in which the company competes has a significant impact on its productivity compared to the internal control forces. Various factors may be included in this industry, such as economies of scale, diversification and production differentiation
The external environment in which Wal-Mart operates imposes restrictions and pressures that manage the policies that are on average above. Therefore, the company will create and develop the internal skills required by the external environment to indicate that the company can use existing capabilities
Technology is one of the most important elements of competitive advantage. The ability to efficiently and effectively
Thus, the success story of Wal-Mart is not limited to its location strategy. The company is an innovator driver in information systems and logistics. It is a powerful tool for retailers in the US to create and apply a high quality product control system that uses bar code technology, as well as scanners to process the order. The company was in position to track sales and make the necessary adjustments to its stores to match the products found in the stores, taking into account the demand of local residents
This prevents unnecessary sales and, as a consequence, do not carry out periodic sales to shift unsold inventory. Later, the company connected the information system to a distribution network in which the reserves were stored before the shipment of other products within a 300-mile radius
The inclusion of information and distribution centres has also led to a reduction in inventories that the company kept in stores, thereby wasting more time on the sale of space, which also reduces the amount of capital that it occupied for a period of time. The company also had an impact on suppliers to keep the electronic network in stores in order to reduce the geographical distances between them, to store information about daily sales/stores, expenses, profits, and to lose, evaluate and process online in real time
On the other hand, IT development has been one of the main drivers of globalization and has since been seen as a major component of the company’s global business strategy. It has also been built into almost all fields, including economic government, business or social fields
Globalization also affects how the world works. According to Hitt and Hoskisson (2013), this is “intensifying global connectivity, assuming a world in which all movements and mixtures, contacts and communication, as well as constant cultural interaction and exchange.” Today, different markets have become global, assessing the environmental situation in the industry, as well as assessing the impact of globalization on the completion of the industry
Even so, according to Tsui (2012), globalization is a process of increasing the flow of capital, people, products, images and ideas all over the world. The Wal Mart has been transformed from small-scale retailers into a global company with an impressive increasing rate. It has more than 4,000 business outlets in the United States and more than 1, 6,000 facilities in Canada, Mexico, Brazil, Puerto Rico, Germany, China, Korea, Argentina, and the United Kingdom
In addition, the company has taken over the integration of the global supply chain, which is controlled by multinational producers, as well as by distributors. Despite this, globalization has led to increased competition among firms. Trade is carried out throughout the country, leading to the importation of products from all global coal. It also forced the store to maintain new trends and changes in order to maintain the market advantage
Its growth has also been met by others to have long-term benefits. The company is also and can have a beneficial growth limit (William, 2010). Wal-Mart is also the target of the law, and many employees around the world have different claims, claiming that the company’s culture separates them from each other
Globalization is a strategy for the distribution of political, social, cultural and economic approaches across borders. It led to time compression. The change between the different points in time and space between local communities decreases and decreases. The company acknowledged this opportunity and planned for global markets. It also has information systems, logistics and human resources practices. These strategies, together with each other, have resulted in increased productivity and reduced costs compared to any other competitor
It also helped the company generate high profits at low prices. This analysis shows that the company can move from production capacity to another country to expand its markets aggressively
Hitt, M. A., &Hoskisson, R. E. (2013).
Tsui, E. (2012).
(…) (…) A. (2010).
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